BlueScope Steel reported lower than expected earnings and with conditions expected to remain difficult brokers see little reason to get excited about the stock.
Mixed, with a lack of conviction, is the way last night’s trading US stock markets could be described as the Dow recovered early losses to finish higher. We are now playing a waiting game.
According to Scotia Capital it is again time to be bullish on commodities, with preferred exposures being iron ore, coking coal, zinc, copper and aluminium.
Comparisons with 1998, and a quick look at the upcoming mortgage reset situation in the US, suggest today’s rally hasn’t necessarily marked a bottom.
The appointment of Gail Kelly as the new CEO of Westpac has been well received by analysts but there are also implications for St George, the bank she is leaving after a successful stint in charge.
This week is virtually devoid of data from the US, which might be a good thing, while Australia is not laden either, but this is Week one of the two busiest results weeks.
The US Fed back-flipped on Friday, declaring an appreciable downside risk to the US economy. In cutting its discount rate, the Fed sparked a 233 point rally in the Dow.
The RBA is closely watching world economic developments, but at this stage sees nothing to change the overall inflationary story.
Commodity prices have not been immune from the current financial markets turmoil but Barclays Capital expects fundamentals will provide support once markets settle.
In an extraordinary night that followed an extraordinary day, commodity prices collapsed, US bond yields were clipped, the yen accelerated its buyback and Wall Street found a bottom.
